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Friday, April 25, 2008

Today's Forex And Forex Trading News

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Make A Killing Online With This Automated Analytical Forex Software as seen on CNN

Training- What a Good Forex Training Program Should Include

Should new Forex traders take Forex trading courses or join a Forex training program? Definitely yes; by now you have probably heard that only 5% of traders achieve consistent profitable results when trading the Forex market. The main reason for this is the lack of education. Don't get me wrong here, taking a Forex training program or a Forex trading course won't guarantee profitable results, nothing can, but choosing the right Forex training program or Forex trading course will definitely put the odds in your favor.

Before spending any amount of money on any Forex trading course or Forex training program there are some important aspects you need to take in consideration. There are many training programs available, but not every one of them suits the needs of every trader.

The first thing you should be looking in a Forex training program is the content of the material. Unfortunately, most courses or training programs focus or spend most of the time on basic concepts. Though these basic concepts are important, spending most of the course on them won't help the trader to make consistent results.

The following subjects are what I consider the most important aspects of trading and every training program or trading course should address:

Forex trading basics.

Review basic concepts such as: margin, type of orders, a little background, bid/ask, rollover, etc. You need to make sure you understand every single concept to perfection.

Main drawbacks of Forex traders.

Being aware of the common mistakes made by Forex traders and knowing how to handle them will prevent new traders from making those mistakes.

Technical and fundamental analysis.

These are the two main approaches adopted by Forex traders. Knowing how to properly apply each concept will definitely put the odds in your favor.

The three pillars of Forex trading. I consider that these three subjects have the most impact on every trader trading account.

Forex trading system development.

Having the right system is a must if you want to have consistent profitable results. Having a system that doesn't fit you will cause a series of problems that will make your trading account vanish away (second guessing the system, not following your system, etc.)

Money management.

This is considered by many successful traders to be the most important single aspect of trading. Money management helps to increase your profits geometrically and at the same time limit your losses (i.e. a good risk reward ratio of about 2:1 will make you money in a Forex trading system that is right only 38% of the time.)

Trading psychology.

Being aware and knowing hot to handle the psychological barriers that affect every trader decision will put the odds in your favor.

Other important aspects every training program should include are:

Developing habits for success (such as discipline patience, taking responsibility of every action, commitment, etc.,) understanding and taking our trading as a business, risk and trade management.

Another important aspect you should take into consideration when choosing a Forex training program is the mechanics of it, getting to know how the training program works.

A good Forex course will have the following:

A live conference room, to apply everything learned under live market conditions.

One-on-one coaching, every trader has different needs and requires special attention. For instance a trader wanting to improve the system and requires individual feedback from the instructor about it.

Online trading course, a course that could be accessible through internet. A plus is a course where you are able to access the course at the convenient time for you, so you don't have to change your lifestyle.

A forum, where members can talk just about everything related to the Forex market and the Forex training program.

Trading the Forex market is no easy task. It requires a lot of hard work. Making the right decision will definitely put the odds in your favor. Take your time when doing your diligence because it is a big and important step in a trader's trading career.

Some Quick Forex Information

forex made easy

I always try to pyramid while position trading medium-term once I am convinced of a new medium-term trend emerging. Like in USD/JPY position trading 135-132 as an initial position, adding in 132 and 129 areas. Same for AUD/USD and EUR/USD with similar strategies. But sitting on positions and watching the counter-rallies costing truck load of money is not easy job to do and causes lots of pain all the time. Most traders even among experienced ones cannot bear that pain and give up too early. But there is no other way to make a big money and we have to bite the bullet and "sit and accumulate" as long as the medium-term trend is intact. That is why I always believe psychological aspects of trading is far more important than anything else in successful trading. A mind game like those bluffing game of poker.

currency convertor

FX traders include governments, corporations and fund managers doing business with foreign countries, that need to exchange one currency for another, and speculators who seek to profit from price movements in the markets.

currency exchange rate

Basic forex pivot point trading is based on two prevailing tendencies. If a day�s price action begins above the pivot point, prices will tend to stay above that point (fulcrum) until it reaches a resistance point. Conversely, if a day�s pricing action begins below the pivot point, the price will tend to stay below that point until it reaches a support point. A resistance level is a price that tends to prevent further upward movement. A support price is a price action point that tends to prevent further downward movement

Forex News Stories

European Morning Update 24th April 2008

Thu, 24 Apr 2008 01:21:33 -0400
Dollar slightly firmer in Asian trading

Releases from Japan:
Forecast Actual
February All Industry Activity Index (MoM) - 0.5% - 1.4%
March Corporate Service Price (YoY) +0.7% +0.4%

Japan’s All Industry Activity Index inevitably followed the poor showing in the Tertiary Index earlier in the week with a -1.4% decline in February. Rather surprisingly it has been the weakness in the services sector that has provided the drag with lower spending on financial and insurance services.

However, given the breakdown of the services sector it is clear that the consumer has been limiting spending on services such as retailing, dining and travel which have been hit by loss of confidence and higher energy prices.

However, on the brighter side corporate service prices rose less than forecast. It was the 20th consecutive monthly rise but saw transportation costs rising by less – mainly linked to the higher value of the Yen.

Still, there were price rises going through at the beginning of April and this should maintain the upward pressure over the coming months.

The following economic releases are due today:

March
U.K. Retail Sales (MoM) - 0.3%
U.K. Retail Sales (YoY) +4.3%
U.S. Durable Goods Orders (MoM) +0.1%
U.S. Durable Goods Orders ex transp (MoM) +0.5%
U.S. New Home Sales (MoM) - 1.0%
U.S. New Home Sales 584K

April
French Business Confidence Indicator 108.0
French Production Outlook Indicator - 13.0
Italian Consumer Confidence Index 99.6
German IFO: Business Climate 104.3
German IFO: Current Assessment 111.0
German IFO: Business Climate 98.0
U.K. CBI Quarterly Industrial Trends
U.S. Initial Jobless Claims (19th) 375K
U.S. Continuing Claims (12th) 2960K

Hmmm, no follow-through for the Euro above 1.6018 yesterday and a pullback instead. In normal circumstances I may just feel more confident of having seen the top. However, the rally from the 1.5510 low has been anything but normal and until I see a stronger reversal signal I’d prefer to take the middle road.

The market does still seem to have its bit between the teeth in condemning the Dollar but frankly it really hasn’t performed that badly against the Swissie and Yen. It’s not a one way market by any means just yet at the moment. And the overall technical signals remain with the beginnings of bullish Dollar cycles which should last for the rest of the year…

So it does seem to come down to whether the Euro has satisfied its lust having had its way with 1.60 or whether it’ll go back for one more gloat.

Elsewhere The Pound dropped nicely back towards the 1.9744 low – and may well get there before a small pullback. However I feel there is room for 1.5690-1.5720 before a larger pullback – and if any correlation does return with the Euro then that may be where the latter may attempt to surmount 1.60 again.

And the other pair to watch to provide clues on the Euro is Euro-Yen. That 164.96 resistance held perfectly yesterday from where we have seen initial losses. I’m not sure it will accelerate too much just yet and while I do expect some minor losses at least I still can’t rule out further broad consolidation. However, this should eventually break lower and I suspect on the back of the Euro first. However, I suspect we’ve seen the top here.

Note important support and resistance areas:

USDJPY EURUSD USDCHF GBPUSD
Res: 104.63-90 1.5985-18 1.0249-82 1.9944-72
Res: 104.18-25 1.5914-26 1.0192-20 1.9830-70

Spt: 103.01-21 1.5814-32 1.0103-29 1.9741-70
Spt: 102.32-66 1.5710-65 1.0020-60 1.9690-16